Bering has begun a geological assessment on its 1,200 gross acres targeting the Eagle Ford shale play in Central Texas. This assessment will help define Bering's initial drilling program. The company expects to have a preliminary plan completed by early next week. This prospect has potential gross reserves of 3,000,000 barrels of oil and 120 well locations and will target the Eagle Ford, Austin Chalk, Buda and Edwards zones. Bering will retain a 100% working interest and an 80% net revenue interest with a two year lease term.
The Eagle Ford Shale is a shale rock formation located in multiple counties in South Texas. It underlies the Austin Chalk and the Edwards limestone formation and is just below these formations. It is considered by geologists to be the "source rock," or the original source of hydrocarbons (oil and gas) that are now found in the Austin Chalk above it. Industry leaders have been quoted as saying that it has the "perfect mineralogical makeup for shale play" and one of the world's largest oil & gas companies has already called it the sixth largest domestic oil discovery in the U.S. history.
"This is a crucial step in implementing our drilling program," stated Steven Plumb, Chief Financial Officer of Bering. "We expect to complete this process in the near term so that we can begin drilling our initial wells by this summer."
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